MEETING DATE: 11 Jun 2019
STAFF RESPONSIBLE: Greg Ferguson DEPARTMENT: Town Manager
DESCRIPTION
Public Hearing for Fiscal Year 2019-2020 Proposed Budget Ordinance
Information: A balanced budget is required by law to be adopted by the Town Board before July 1st of each year. On April 30, 2019, Town Manager Ferguson presented the Proposed FY 19-20 Budget Ordinance to the Board of Commissioners. In May the Board of Commissioners held work sessions to review, discuss and provide input on the proposed budget. A public hearing must be held before the Budget Ordinance can be adopted. This public hearing as been advertised in accordance with applicable laws.
Financial Impact: N/A
Action Requested: Close Public Hearing
Financial impact of revisions made to the proposed budget: Change
Budgeted Workers Comp Insurance expense account lines were reduced in all departments. The Town's cost modifier, used to calculate our premium, was reduced, due to positive claims history, per the new updated League of Municipalities (Interlocal Risk Insurance) estimate received by Town in late May.
(9,500) $
As of late May the Town still has not received an updated property and general liability insurance estimate, however in order to more precisely charge each department for insurance costs, we reallocated the current estimated expense between departments based on the actual number of department assets, # of employees & specific coverages pertaining to each department. A small increase in expense was added for insurance on additional capital assets budgeted (additional police car) that will be incurred if purchased in FY20.
600 $
The Town Hall Building Rent expense line was increased due to new charge expected to be charged in FY20 by the landlord for a "reconciliation billing" for their allocation among the shopping center property tenants of shared property maintenance. This potential charge was detailed in our lease contract, however it had not been charged previously. The Town received an additional billing (for FY19 ) in late May 2019 for the period ending December 2018. Therefore, the FY2020 budget is increased for this additional billing which is now expected to occur each year.
6,190 $
Added $14,000 to the Human Resources Department's Professional Services expense account line for the estimated cost of a pay & class study. This increase is partly offset by the removal of $7,000 of professional services expenses and contract labor expense requested in the HR department original proposed budget.
7,000 $
Removed the 2% salary market adjustments from all department salary budgets $ (75,000)
Revised merit salary adjustments from a maximum of 2%, to a maximum of 3%, reduced other estimated
salaries $ 36,000
Reduced FICA, NC State retirement, 401K, - based on salary changes $ (8,000)
The Police department budgeted expenses increased a total of $128,735. The department expense was increased by $72,000 for one additional patrol officer with benefits, increased by $60,955 for one additional fully equipped vehicle, increased for uniforms, reduced overtime, reduced vehicle maintenance (due to increased number of new vehicles and based on low actual amount used so far in FY19 as of May). Total of 2 new officers, with benefits, uniforms and equipment are now budgeted along with 4 new vehicles with equipment.
128,735 $
The Finance department capital expense account line budget was reduced because IT completed the work necessary in late May to have the new servers built which now provides the capability to download the software in June. Therefore, the server cost and software license fee cost, a total of $62,200 can now be billed by the vendor and charged to FY19 (removed from FY20 budget). The remaining portion of the project would then be completed in FY20.
(62,200) $
Cummulative net of various expense line estimate updates $ (23,825)
Added a contingency in the Administration department for an estimated amount for potential salary adjustments that the board may choose to approve after completion of the pay & class study in the late fall of 2019. Based on the information provided by two firms, which provided estimates that the average market adjustments are
approximately 4% of total salaries.
150,000 $
Reduced the proposed Transfer out of General Fund to Capital Improvement Plan Fund (Original proposed
amount of $650,000 now reduced to $500,000). $ (150,000)
Total change in General Fund Budget $
-Reduced the proposed transfer in the Capital Improvement Plan Fund ( proposed budget for revenue into the
fund was $650,000, now a total of $500,000 for FY20 is the proposed budget in CIP reserve fund). $ (150,000)
Total change in all funds budgeted $ (150,000)
Revised Budget Ordinance - All Funds $ 15,581,500
Original Budget Ordinance - All Funds $ 15,731,500 (Note: In addition, the salary, benefits and training related to administration for the Assistant to the Town Manager/Deputy Clerk, was
moved from the Clerk Department into the Administration Department. The training for the Assistant to the Town Manager/Deputy Clerk that was related to the clerk function remains in the Clerk Department proposed budget.) No net effect on the total budgeted dollars.
TOWN OF WAXHAW, NORTH CAROLINA Fiscal Year 2019-2020
BE IT ORDAINED by the Board of Commissioners of the Town of Waxhaw, North Carolina:
SECTION 1: That for the operation of the Town of Waxhaw for the fiscal year beginning July 1, 2019 and ending June 30, 2020, the amounts in the following schedules are appropriated:
GENERAL FUND: Elected Officials $ 243,430 Administration $ 862,705 Clerk $ 135,975 Finance $ 562,950 IT $ 320,530 Human Resources $ 167,115 Police $ 3,764,750
Waxhaw Fire Department $ 13,000
Engineering $ 636,155
Planning $ 788,125
Downtown $ 175,810
Code Enforcement $ 76,010
Parks & Recreation $ 1,098,955
Public Services $ 994,245
Environmental Protection-Sanitation $ 1,390,000
Emergency Mgt & Safety $ 45,995
Transfers $ 610,000
GENERAL FUND $ 11,885,750
CAPITAL PROJECTS FUND $ 466,910
RENTAL PROPERTY FUND $ 225,000
CEMETERY FUND $ 20,100
CAPITAL IMPROVEMENT PLAN RESERVE $ 500,000
POLICE EXPLORERS FUND $ 6,230
POLICE STATE DRUG FUND $ 13,500
POLICE FEDERAL DRUG FUND $ 10
POWELL BILL FUND $ 526,000
TRANSPORTATION - SMALL PROJECT $ 520,000
TECHNOLOGY FUND $ 115,000
BUILDING INSPECTION FUND $ 1,303,000
2019 and ending June 30, 2020, to meet the appropriations in Section 1, as set forth in the following schedules:
SECTION 3: There is hereby levied a property tax rate of thirty-eight and one half cents ($0.385) per on hundred dollars ($100) valuation of property as listed for taxes as of January 1, 2019, for the purpose of raising the revenue listed as “Ad Valorem Tax” in the General Fund in Section 2 of this Ordinance. This rate is based on total estimated net valuation of property for the purposes of taxation of $1,909,900,500 and the Fiscal year estimate rate of collection of 99.28%.
SECTION 4: The corresponding “FY 2019-2020 Schedule of Fees” is approved with the adoption of this Annual
Budget Ordinance.
SECTION 5: The Town Manager is hereby authorized to transfer appropriations between line-item expenditures within the same fund. He may not transfer any amounts between funds, except as approved by the Board of Commissioners in the Annual Budget Ordinances as amended.
SECTION :6 Copies of the Annual Budget Ordinance shall be furnished to the Town Clerk, to the Board of Commissioners, the Town Manager, Budget Officer and the Finance Officer to be kept on file by them for their direction in the disbursement of funds.
Adopted this the _______day of xx, 2019.
____________________________________ Stephen E. Maher, Mayor
Attest:
____________________________ Melody Shuler, Town Clerk
GENERAL FUND:
Ad Valorem Taxes $ 7,326,990
Sales & Use Tax $ 2,140,000
Franchise Tax $ 840,000
Interest Earnings $ 175,000
Other Revenues $ 1,403,760
GENERAL FUND $ 11,885,750
CAPITAL PROJECTS FUND $ 466,910
RENTAL PROPERTY FUND $ 225,000
CEMETERY FUND $ 20,100
CAPITAL IMPROVEMENT PLAN RESERVE $ 500,000
POLICE EXPLORERS FUND $ 6,230
POLICE STATE DRUG FUND $ 13,500
POLICE FEDERAL DRUG FUND $ 10
POWELL BILL FUND $ 526,000
TRANSPORTATION - SMALL PROJECT $ 520,000
TECHNOLOGY FUND $ 115,000
BUILDING INSPECTION FUND $ 1,303,000
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Section I – Manager’s Budget Message to the Board
Section II – DRAFT Budget Ordinance
April 23, 2019
The Honorable Stephen E. Maher, Mayor Members of the Board of Commissioners Waxhaw, North Carolina
Dear Mayor Maher and Members of the Board of Commissioners:
Pursuant to Section 159-11 of the North Carolina General Statutes, I am pleased to present the Town of Waxhaw’s fiscal year 2019-2020 Recommended Budget for your review and consideration for approval.
The following are the recommendations that the proposed budget includes:
The proposed operating budget continues the Board’s focus on safety. The General Fund capital outlay includes approximately $80,000 in safety improvements for Town parks. Also included are improvements for public safety: the addition of one new police officer, three fully equipped patrol cars, six new radios, and three radar.
To facilitate potential future capital improvements, the General Fund operating budget includes a possible transfer out of $100,000 to begin a capital project; to be determined by the Board at a later date. The proposed budget also includes a potential $10,000 transfer out of the General Fund operating budget to fund a possible grant match. In response to higher than average staff turnover and in order to maintain the Town’s
competitiveness with other local governments, the proposed budget includes the implementation of market adjustments in step with the increase in the consumer price index.
The operating budget includes the newly established separate fund for Building Inspections in order to restrict all revenues collected from building inspections to be utilized only for expenditures incurred to provide those services. This facilitates state reporting compliance.
The proposed budget provides for over $1 million dollars in street and transportation improvements, made possible in part by the Small Transportation Project Fund (STP), which includes $520,000 available for transportation projects to be determined by the Board, along with the Powell Bill fund which includes $526,000 available for street paving and other street or sidewalk improvements.
2 FY2019-2020 RECOMMENDED BUDGET
The General Fund budget, as proposed, would levy an unchanged property tax rate of thirty-eight and one half cents ($0.385) per one hundred dollars ($100) valuation on an estimated total property tax base of approximately $1,909,900,500. Property tax revenues for fiscal year 2020 are budgeted at total estimated collection of $7,326,990, including the collection of prior year delinquent tax and assuming a 99.28% collection rate for the current year. State law requires that we estimate property tax revenues at a level below the current year collection rate. The Town has an excellent historical average collection rate of 99.85%.
FUNDS IN THE BUDGET: The following chart shows the funds through which the Town operates. The General Fund is by far the largest, and is the primary operating fund for the Town. Proposed expenditures for each of these funds will be addressed throughout this budget message.
The following are the 12 funds that will be included in the Operating Budget Ordinance for fiscal year 2020:
Fund
Number Fund Description
Adopted / Amended Budget FY19
Proposed
Budget FY20 Change
120 GENERAL FUND $ 10,960,827 $ 11,885,750 $ 924,923
140 CAPITAL PROJECTS FUND $ 1,466,200 $ 466,910 $ (999,290)
200 RENTAL PROPERTY FUND $ 112,500 $ 225,000 $ 112,500
220 CEMETERY FUND $ 17,030 $ 20,100 $ 3,070
240 CAPITAL IMPROVEMENT PLAN RESERVE $ 650,000 $ 650,000 $
-250 POLICE EXPLORERS FUND $ 6,600 $ 6,230 $ (370)
255 POLICE STATE DRUG FUND $ 10,000 $ 13,500 $ 3,500
260 POLICE FEDERAL DRUG FUND $ 36,330 $ 10 $ (36,320)
290 POWELL BILL FUND $ 563,544 $ 526,000 $ (37,544)
380 TRANSPORTATION - SMALL PROJECT $ 304,000 $ 520,000 $ 216,000
500 TECHNOLOGY FUND $ 100,000 $ 115,000 $ 15,000
600 BUILDING INSPECTION FUND $ 1,025,000 $ 1,303,000 $ 278,000
TOTAL ANNUALLY ADOPTED BUDGETS: $ 15,252,031 $ 15,731,500 $ 479,469
3 GENERAL FUND REVENUES
Revenue Highlights:
Property Tax Rate - $0.385 (No rate change from FY2018-2019) Continued positive growth in Property Tax Base resulting in:
Growth in Ad Valorum Real Property Tax Revenue - $516,155
Increase in Ad Valorum Motor Vehicle Tax Revenue -$75,000 Continued increase in Sales Tax Revenue - $140,000
Increase in budgeted Investment Revenue - $100,000
Increase in Parks & Recreations Programming Revenue - $57,000 Increase in Parks & Recreations Event Ticket Sales - $22,275
General Fund Revenues are comprised of real property and motor vehicle taxes, unrestricted governmental revenues, permits and fees, investment earnings, restricted governmental revenues and miscellaneous revenues (those not included elsewhere). For fiscal year 2020, those revenues are expected to increase by $924,923 or 8.4% over the prior year budget. The primary source of these increased revenues are increases in property tax revenues, sales tax revenues and investment earnings.
4 Ad Valorum Tax -Real Property Tax
Property Tax is the largest revenue source for the Town, and comprises 62% of the General Fund Revenues. The Town’s property tax rate remains unchanged at $0.385. The estimated assessed value of the Town’s real and personal property is expected to increase by approximately 6% over the prior year levy, per the preliminary estimate provided by the Union County Tax Assessor. Therefore, additional ad valorum revenues of approximately $516,155 have been estimated for the General Fund for the upcoming fiscal year. However, many new properties may not have been processed by the County at the time of the preliminary estimate, and as in prior fiscal years, additional growth could be recorded before the tax scrolls are produced for fiscal year 2020.
Ad Valorum Tax –Motor Vehicle Property Tax
North Carolina has a system of “Tax & Tag” which is processed by the state Department of Motor Vehicle (DMV) which bills and collects local property tax on vehicles along with the annual plate renewal notices. The DMV bills, collects and remits the Town property tax of $0.385 per $100 of value of each motor vehicle registered within the Town limits. This ad valorum/property tax should not be confused with the $25.00 Municipal Motor Vehicle Tax, which is also now included on the registration renewal notice and collected by the DMV. More information concerning that tax, which was added in fiscal year 2019, will be provided under the Small Transportation Project Fund. The ad valorum Motor Vehicle Property tax is budgeted in the General Fund at $765,000 which is approximately $75,000 higher than the amount budgeted in FY19. The increase is calculated based on the expected actual collections during fiscal year exceeding the amount estimated and budgeted during fiscal year 2019.
Intergovernmental Revenues
Of the taxes distributed to local governments by the state, sales and use taxes make up the largest amount of state revenue received by the Town. Local sales taxes are divided into different Articles. Article 39 tax is charged in every locale and distributed based on where the Article 39 sale occurred. For the past five fiscal years, Article 39 sales tax distributions have seen positive growth each year. The prior year recorded a 5.53% growth in collections statewide. Per the NC League of Municipalities’ projections, Sales & Use Tax Revenues are expected to continue to grow at a rate of 4.5% over the prior year and are budgeted in the General Fund to increase $140,000 over the prior year.
Franchise/Utility Tax distributions are dependent on weather (and consumption in general) and electricity prices. While long-term industry predictions indicate increased energy efficiency leading to a decrease in consumption, North Carolina’s population (and its electricity customer base) continues to increase. A slight growth in this revenue source is predicted by the League, and therefore the Town has budgeted the Franchise Tax revenue at $840,000, approximately 2.8% over the prior year.
Solid Waste Disposal Tax is another distribution received from the State. The State levies a $2 per-ton “tipping tax” on municipal solid waste and construction and demolition debris that is deposited in a landfill in the state, or transferred at a transfer station for disposal outside
5 the state. Cities and counties receive 18.75 % of the tax, and revenues are distributed on a per capita basis. The prior year experienced only 0.2 % growth statewide. Therefore, the Town has conservatively budgeted the NC Solid Waste Disposal Revenue at $9,035, only a $35.00 increase over the prior year.
Alcoholic beverage tax is an excise tax paid by the producers of alcohol based on their sales of alcohol in North Carolina. A portion of taxes collected by the state are distributed by the Department of Revenue to municipalities based on population. A number of changes to the state’s system of alcoholic beverage sales are currently being discussed in the General Assembly, therefore the Town has budgeted close to the same amount as the prior year for the North Carolina State Beer & Wine revenue account.
Investment Earnings
Interest is earned by investing the Town’s idle cash, which consists primarily of the reserves, or fund balance. Investments, consisting mostly of short term commercial paper are purchased in compliance with North Carolina General Statutes, which prioritizes the goals of investment activities in the order of safety, liquidity and lastly return. Investment earnings for the General Fund is budgeted at $175,000 for the proposed FY20 budget, which is $100,000 higher than the current year budget and is $164,000 higher than the $11,000 earned two years ago.
Permits & Fees
Zoning, Permit, Inspection and Plan Review Fees fluctuate and are dependent on several economic and other factors which cannot be predicted. Permit & Fee revenues, for example, fluctuate year to year based on the number of new applications. In addition, permit fees are determined by acreage, the number of lots, square footage, scope of the project, and the type of process outlined in the fee schedule, therefore the revenues can vary significantly from year to year. Therefore, those revenue sources have been conservatively budgeted close to the amounts expected to be received during fiscal year 2019 and at the level necessary to cover the costs of providing the services.
Parks and Recreation Revenues
The Parks and Recreation Department revenues will increase for the following:
Programming Revenues - During mid-fiscal year 2019, the Parks & Recreation Department added several new programming activities. The budget for fiscal year 2020 includes an increase in revenues of $57,000 for the collection of participant fees for the new park programs. The Parks & Recreation Programs expense line budget has been also increased by $51,300 for the cost of paying instructors for the programs, in addition, the expense line includes facility rental and supplies of $7,000. Therefore, the new programming activities are expected be slightly above break-even with a net of approximately $1,300.
Event Ticket Sales Revenues – These revenues are offset in whole or part by corresponding expenditures in the Parks & Recreation expense budget, resulting
6 in an estimated net proceeds of $485 for event ticket sales. The following two events generate event ticket sales revenues and expenditures:
Grillin & Chillin, the BBQ competition held during the Autumn Treasures fall festival, generates revenues and an equal offsetting cost of ticket sales. Visitors can purchase tickets to be used to taste the various BBQ competitors’ food. The Town contracts with a local non-profit who provides volunteers to sell the tickets. In exchange, the Town has a contractual agreement to pay the non-profit an amount equal to the ticket sales collected, less applicable sales tax owed to the state. Therefore, the Event Ticket Sales Revenue line includes $4,000 for the estimated revenue to be collected and the Parks & Recreation Event Ticket expense line includes an offsetting $4,000.
Taste of Waxhaw – The Town has added this new feature to the Kaleidoscope festival that is held in the spring each year. Visitors will be able to purchase Taste of Waxhaw “coins” that they will “spend” at local restaurants to taste a sample of food. The budget for Event Ticket Sales Revenue includes $21,600 for the estimated revenue collected for the purchase of the coins. The Town will then pay each participating restaurant the revenue collected for the sale price of the coin, less 10%. The Parks & Recreation expense budget includes $21,115 for the amount estimated to be paid to the restaurants and the expense for the amount due to the state for sales tax on food sales.
GENERAL FUND EXPENDITURES
The General Fund expenditure budget is separated into three categories or types:
Personnel expenditures for the Town of Waxhaw, like all local governments, are the Town’s largest expenditure category, accounting for over 50% of the General Fund expenditures. (Note: this now excludes the Building Inspection Function – detailed on subsequent pages of this document).
Operating Expenditures are the costs of utilities, supplies, fuel, fees, staff education, and non-capital equipment that are necessary to provide services to the public.
Capital Expenditures are the purchase of major capital equipment, vehicles or software which individually cost over $5,000 per item.
7
General Fund Personnel Expenditures
The components of the personnel expenditures include employee salary and overtime, the employer share of social security (FICA), state retirement contributions, medical insurance and 401K contributions.
The General Fund Departments are combined into functions for financial reporting purposes. The function for Building Inspection, including the expense for that department’s eight employees, is now accounted for in a separate, restricted fund. (See separate section in this document below) The largest function in the General Fund is for Public Safety, which has 31 of the 69 Town employees and accounts for 41% of the budgeted General Fund personnel expenditures.
8 Personnel Highlights – General Fund
Addition of one new police officer position, salary & benefits increase - $72,000 Employee Market Adjustments – approximately $75,000
Possible Employee Merit Increases, 0- 2% - approximately $73,000
Probationary Period possible increases of 5% for new employees - $38,000 Increase in Medical Insurance rates - $ 55,000
Increase in required State Retirement contribution rate - $60,000 Personnel Details:
The Town is in the “business” of providing service to citizens. Therefore, the Town employees who provide those services are our single greatest asset. During the past two fiscal years, nine employees took new positions with other nearby local governments. During fiscal year 2019, eleven (11) employees resigned, four (4) positions are currently open. In response to this higher than average staff turnover, the budget for fiscal year 2020 proposes a 2.0% market adjustment for all positions to allow the Town to be competitive within our region. According to the Labor Department Consumer Price Index for urban areas (CPIU), which is the standard measure of inflation, has increased 1.9% in the last 12 months. In addition, to retain and attract employees, the budget also includes possible merit increases in the range of 0%-2%.
9
New Positions: During the budget process, department heads have an opportunity
to request new positions. During the fiscal year 2020 budget process, eight positions were requested by department heads (five of the eight were police positions). The total estimated cost of the salary and benefits for all requested positions was approximately $650,000. However, the manager has only recommended one new position, for a police officer, be included in the proposed budget. One new officer position had been approved and filled in the fiscal year 2019 budget. The department currently has two (2) administrative employees and 28 sworn officers.
Salary Budgets: When comparing the proposed budget for fiscal year 2020, it is important to note that the salary budgets for fiscal year 2019 were estimated in May of 2018, prior to the employee evaluations and award of merits, which occurred in July 2018 after the budget was adopted. Therefore, the actual awarded salaries for each department may have varied slightly from the estimates budgeted. The estimated increase in the proposed budget for fiscal year 2020 for each individual and department is based on the actual current salary as of April 2019, not on the amount budgeted for fiscal year 2019. In addition, there have been several staffing changes and other factors that contribute to the changes in actual salary expenses verses the amounts originally budgeted. These include the following:
Five of the six positions in the Planning Department were vacated during fiscal year 2019. Three (3) of those positions have been filled as of April 2019, however the salary for the replacement employees are on average higher than the former employees. Additionally, one of the senior planner positions was reclassified to provide for a Planning Director. The proposed budget for fiscal year 2020 includes estimates for the other three (3) vacant positons in the Planning Department that may not be filled by the time the budget is adopted, therefore the budgeted salary for each vacancy position is only an estimate.
Per the personnel policy, newly hired or promoted employees may receive a 5% increase after completing the six month probationary period. During fiscal year 2019, there were eight (8) employees that received the increase, therefore the actual salary for some departments are now at a rate higher than was originally budgeted for fiscal year 2019. Future probationary increases, although not guaranteed, are estimated to add an additional cost of approximately $33,000 to the fiscal year 2020 budget for the additional eleven (11) employees that will qualify to be considered for the 5% increase during fiscal year 2020.
The Engineering Department has had several staffing changes, including a vacancy and a promotion for the Engineering Director position, the filling of several vacancies, and the award for the completion of the probationary period 5% increase for two employees during fiscal year 2019. The proposed 2020 budget also includes a possible 5 % increase for one new Engineering Department employee whose probationary period is expected to end in August 2019.
10
Career Development Increases - In addition to market and/or merit increases, police officers may receive Career Development Plan increases. This plan contributes to increases in the Police Department’s salary line of approximately $7,800. In addition, several police officers were promoted during fiscal year 2019, after the 2019 budget was adopted, therefore the 2020 budget now reflects those increases.
The salary and benefits for the eight employees engaged in providing for the administration of building inspections are now separately accounted in the newly established Building Inspection Fund. (see separate section below)
Medical Insurance: A large component of personnel expenditure is the cost of medical
insurance for employees, which is 12% of the total personnel expense. For the plan year that begins April 1, 2019, the insurance carrier, Cigna, slightly increased the premium rate for medical coverage. This resulted in an increase of approximately $55,000 over the prior plan year. The total cost of employee insurance for fiscal year 2020 is approximately $754,000, which includes payment for the medical insurance premium for all full-time employees. ($68,000 is expensed in the Building Inspection Fund). In addition, the Town pays a portion of the costs for dependent or family coverage. Employees may change their coverages annually each April.
State Retirement: The Town is required to contribute to the Local Government Employees' Retirement System (LGERS) for all full-time employees. The LGERS Board of Trustees voted in January 2019 to increase the system’s employer contribution rates starting in fiscal year 2020 in order to address a significant system funding shortfall expected in future years. This changed the course from the incremental 0.25 % increase previously planned under the Employer Contribution Rate Stabilization Policy (ECRSP). Additional rates, such as rates associated with death benefits or past service liabilities are added to the base rate to determine the actual contribution percentage for each employer. The death benefit rate is subject to change in future years, however it remains unchanged for fiscal year 2020. The required 1.2% increase for fiscal year 2020 results in an increase of approximately $60,000 for the proposed budget, town wide. The total cost of retirement benefits for all employees is $426,100, for all funds. The Building Inspection fund is charged for $39,840 of the expense related to the eight employees in that department. Employees are required to contribute 6% of pre-tax earnings to the plan. The following shows the schedule for the current and future increases in the state retirement rates and the impact the increases will have each fiscal year:
11 State Retirement, Continued
GENERAL FUND OPERATING EXPENDITURES General Fund Operational Highlights
Operational expenses are the non-personnel and non-capital expenses that are used in the day to day operations of the Town. These include supplies, materials, non-capital equipment and tools, fuel, professional services, training and education, professional dues, service contracts and other expenditures.
The Highlights of General Fund operating expenditures in the fiscal year 2020 Recommended Budget are:
The addition of $100,000 of funding to begin the planning phase of a capital project to be determined by the Board.
The addition of a $10,000 possible grant match for a tentative grant application. Continued increase in Solid Waste Contract Costs - $125,000.
Estimated increase for Workers Compensation, Liability & Risk Insurance Expense - $7,000.
Additional costs of electricity for new subdivision street lights - $19,000. Added Election costs - $14,440.
Fiscal
Year
State Retirement
Rate Increase
Schedule for
General
Employees
State Retirement
Rate Increase
Schedule for Law
Enforcement
Officers (LEO)*
Death Benefit
Budget
Impact
2019
7.75%
8.50%
0.05%
2020
8.95%
9.70%
0.05%
$
60,000
2021
10.15%
10.90%
0.05%
$
55,365
2022
11.35%
12.10%
0.05%
$
55,345
2023
12.45%
13.20%
0.05%
$
50,750
221,460
$
*LEO- Law Enforcement Officers Rate is .75 higher than general employees Death Benefit % is subject to change in future years
12 General Fund Operating Expenditures – Department Details
The process to develop the department operating budgets begins in January each year. Department heads are provided with request forms to provide detail cost calculations and projections for the continuing and upcoming costs to operate their departments for the coming year. These requests are submitted to the Finance Department for compilation in late February. The Finance Director estimates and prepares the initial forecasted revenue budget, which will define the maximum expenditure budget total. As is typical, the requested department expenditures will always exceed the estimated revenue, therefore considerable efforts are required to balance the budget. In March, the manager holds a series of meetings with department heads and other key staff to gain additional information in order to fairly weigh the competing priorities of the requests submitted. During this year’s budget request process, the initial total department requested budgets exceeded the projected revenue by $1,040,500, including eight requested new positions totaling approximately $700,000. One new position for a police officer was approved to be included in the proposed budget, the other requested positions, along with other costs had to be cut in order to balance the proposed budget.
The following provides details of the major changes between the proposed 2020 operating budget as compared to the prior year:
The Elected Officials Department budget reflects a $4,189 increase in operating expenditures budgeted for fiscal year 2020. The primary source for the increase is due to the added cost of $14,440 to pay for the fall 2019 elections. The election cost increase is offset by the reduction in the technology line as compared to the prior year which included improvements to the Board meeting room. The Elected Officials budget is also reduced due to the removal of $6,000 in outside appropriations. For all departments in fiscal year 2020, appropriations to all outside entities have been eliminated, except for those for which the Town has contractual agreements to exchange services.
The Administration Department shows an operational increase of approximately $20,000 which is due primarily to the change in the contingency line. As in past years, the 2020 fiscal year contingency is set at 1% of the General Fund budget, for a total of $118,850, as authorized by the Town financial policies in order to provide the Town the ability to respond to unexpected expenditures that may come up during the budget cycle. The fiscal year 2019 contingency was also originally budgeted at 1% of that year’s budget, or $116,300, however, budget was transferred out of contingency to fund the new Safety and Emergency Management Department during the hurricane in the fall of 2019, therefore the current remaining contingency for FY19 is $102,957.
The Finance Department operating expenditures for the proposed budget increased by $16,685 due to budgeting for the possibility of operating both the current payroll system, outsourced to ADP, concurrently while converting to the new in-house payroll software module during the fiscal year. Once the software conversion is complete, the Town is expected to save approximately $19,000 annually by doing payroll in-house.
13 The IT Department operational increase of $13,910 for fiscal year 2020 is primarily due to the replacement of two non-capital servers for which the warranties will expire during the fiscal year.
The Human Resources Department shows a decrease in operational expenditures due to the transfer of $10,000 of safety related costs that have historically been budgeted in the HR Department, to the new Safety and Emergency Management Department. In addition, a reduction of $2,000 for technology expenditures is due to computer purchases during fiscal year 2019 per the replacement schedule, but no budget was needed in that line for fiscal year 2020.
The Police Department operating budget increased by approximately $53,000; this includes additional budget of $18,900 for six new radios, $5,600 for three new radar units, $7,800 added to the uniform account, $6,300 added in the animal control line for the fee of a new data collection and billing company to increase the number of animals vaccinated and registered within the Town (PetData), $3,700 in the Police Department Professional Dues account for a subscription to provide software for training records and policy development, along with an $4,200 increase for a Lexis Nexis crime mapping yearly subscription to aid the department in locating persons.
The support for the Waxhaw Fire Department remains unchanged from the prior year, however $12,000 of the $25,000 allocation is now being funded in the Building Inspections Fund to support the Fire Inspection function.
In the Planning Department, Professional Services increased by $50,000 for a contingency for the contract with the outside consultant to continue work on the UDO, dependent on staffing levels of the planning Department. This increase is partially offset by the change in façade grant budget, which after Board deliberations, has been decreased from $50,000 to $25,000 for the proposed 2020 fiscal year.
The Parks & Recreation Department operational expenses increased by approximately $97,530. This includes the added expense of $51,300 to pay instructors for the new programing classes, however this cost is offset by the corresponding new revenue of $57,000, which will be collected from participants. In addition, the department’s Building and Parks Maintenance line has been increased for the following: $5,000 new cost for annual art maintenance, per the art maintenance plan to provide ongoing pressure washing, welding and other repairs to the five metal sculptures, $7,500 for maintenance to the well and replacement of the lighting at Nesbit Park, along with $10,000 in additional expense for Play Safe Mulch in Barnes Park to mediate the sinking area. The proposed budget includes funding to address the ongoing maintenance and repairs needed at several aging structures, including the Meeting Place and McDonald House, including insulation improvements, scraping, sanding, repair and painting of walls and ceilings. In addition, $5,000 has been added to the park maintenance line to provide a contingency for the possible need to cut down trees on park property.
The Public Services operational budget increased approximately $41,700, the primary components of that increase was for the estimated additional cost of $19,000, for Duke Power electricity for added subdivision street lights which are expected to be added to the
14 Town’s responsibility. The department also has an additional, non-recurring budget of $15,000 for the estimated cost of site environmental review testing for a possible public services facility site.
The Town carries risk and liability insurance with the Interlocal Risk Financing Fund of North Carolina, Property & Liability Insurance Trust, administered by the NC League of Municipalities. Allocation of the estimated annual insurance premium is based on specific risk coverages for each function/department and property coverage is based on vehicles and equipment in each department. Each spring the Town completes an updated risk assessment and property listing. The revised annual premium based on these updates is not received by the Town until late May of each year, therefore the proposed budget includes estimates that may be slightly revised before the budget is adopted. In addition, the Town carries workers compensation insurance from the Interlocal Risk Management Agency, also administered by the NC League of Municipalities. Each spring municipalities provide the Insurance Trust with estimated updated salaries per risk classification. The Town receives an updated premium, based on these estimated salaries and possibly an updated experience modifier, in late May each year. Therefore, the worker’s compensation amounts shown in each department is an estimate that may be revised slightly before the budget is adopted.
Solid Waste Expenditures
The largest increase in operating expenditures in the General Fund Budget is for the continued growth in the sanitation/solid waste contract cost. The Town contracted for sanitation services with Residential Collection Services, (RCS) for the period beginning February 2018, ending June 30, 2023. In March of 2019, the Board approved the assignment of the remaining period of the RCS contract to Waste Pro of North Carolina. All costs and terms of the contract will remain the same, however, as with the previous company, the monthly expense will increase with the addition of services due to added residential properties. The cost of collection of solid waste, recycling and yard debris is approximately $217 per house, in addition there are added expenditures for both fall and spring cleanup events, which vary in cost depending on the quantity of items taken to the landfill. The proposed sanitation expense budget for fiscal year 2020 is $1,390,000, which is an increase of approximately $125,000, or approximately 10% over the current year budget of $1,265,000. As of the end of March 2019, there were 6,088 residential homes receiving sanitation services each month, compared to 5,611 as of February 2018, an increase of 477 homes in a 13 month period. The cost for the Sanitation contract is expected to continue to increase approximately 10% or more each year as the Town continues to add approximately 30 to 50 residential family homes each month. During fiscal year 2019, a 2.5 cent tax increase was approved in order to offset the continuing increase in solid waste expenses. Of the 38.5 cent property tax, approximately 6.5 cents covers the $1,390,000 cost of solid waste services.
15 Solid Waste Increases
Waxhaw Fire Department
The Waxhaw Fire Department (WFD) is a separate non-profit organization that provides public safety services to the residents of the Town. The department is funded through County property taxes. During the past several years, the Town budget has included contributions to the Waxhaw Fire Department to be used to purchase equipment or provide services that will directly improve the services to Town residents. Historically, the funding to the WFD has been approximately $25,000 from the General Fund each year. During the fiscal year 2020 budget, the Fire Department has again requested funding of $25,000. Of that total, $13,000 is requested and budgeted in the General Fund to support the Waxhaw SRT Medical Unit Expenses. The remaining $12,000 of the request is related to training and other support for fire inspections, therefore that amount is budgeted to be paid from the Building Inspection Fund.
GENERAL FUND CAPITAL EXPENDITURES
Capital Expenditures are defined as purchases of improvements or assets which have useful lives that are 5 years or longer and which individually cost $5,000 or more. In the proposed fiscal year 2020 budget, the General Fund department capital requests are $8,476 lower than the previous year’s budget. The following chart shows the detail of the changes between fiscal years:
2017 2018 2019 2020
Actual Actual Budget Projection 1,059,000 $ $ 1,160,000 $ 1,265,000 $ 1,390,000 Increase in Cost $ 139,212 $ 101,000 $ 105,000 $ 125,000 Growth 10% 9% 10% 6/30/2017 6/30/2018 3/31/2019 estimate 5,505 5,846 6,088 6,488 Number of Residences Actual/Budgeted Cost
16 The Parks and Recreation capital budget for fiscal year 2020 is $46,618 higher than the department’s previous year’s capital expenditure budget and includes additional costs for several necessary safety projects, including installation of a ADA paved sidewalk at Nesbit Park, new signage for all parks, playgrounds, and trails to list rules and safety notices, safety fence toppers for four fields, and foul ball netting at Nesbit Park for the pedestrian pathway. These safety projects comprise $79,900 of the requested $99,900 capital budget for the Parks and Recreation Department.
The fiscal year 2020 capital budget for the Police Department is $32,295 above the department’s current year capital budget and includes three fully equipped police vehicles and a replacement server for a total of $191,165 in capital requested. The prior year capital budget included the purchase of two trucks, one of which was for Animal Control, and one SUV.
The IT Department completed a capital fiber project during fiscal year 2019 and did not request any additional capital equipment or projects for the 2020 budget.
The Public Services Department has requested one vehicle replacement during fiscal year 2020 to replace a high mileage 2010 Ford Explorer. During the current year budget, the department replaced two vehicles.
The Administration Department’s proposed budget includes a request for another pooled travel vehicle to replace an aging and increasingly unreliable 2010 Ford Fusion which is heavily used for necessary out of town travel for staff and Board training. The department added one pooled vehicle during the prior fiscal year in order to provide for additional employee use while traveling, which saves money as compared to paying the IRS required mileage reimbursements when employees or elected officials travel in personal vehicles. The fiscal year 2019 budget included $147,000 for financial software in order to have access to all components necessary to complete all required financial reporting, including payroll
Department FY19 Amount FY20 Amount
Increase or
(Decrease)
from prior year budget
Parks and Recreation $ 53,282.00 $ 99,900.00 $ 46,618.00
Police Department $ 158,870.00 $ 191,165.00 $ 32,295.00
IT $ 53,700.00 $ - $ (53,700.00)
Public Service $ 64,474.00 $ 30,785.00 $ (33,689.00)
Administration $ 20,600.00 $ 20,600.00 $
-Finance $ 147,000.00 $ 147,000.00 $
-TOTAL CAPITAL GENERAL FUND $ 497,926.00 $ 489,450.00 $ (8,476.00)
17 and fixed assets. Due to the extended work required by finance staff during fiscal year 2019 to complete the year end close and audit of fiscal year 2018, that computer conversion process could not begin, therefore the amount of $147,000 has been re-budgeted in the Finance Department to fund the project.
DEBT CAPACITY / TENTATIVE CAPITAL PROJECTS
The Town has been working with Davenport & Company, governmental financial advisors for the past 18 months in efforts to determine funding methods for long term capital projects. Davenport has provided several presentations on various funding scenarios during the past year, and on April 9, 2019 provided an update focused on the Town’s current debt capacity, assuming currently available revenues only (no tax increases). The financial model currently used estimates that the Town could fund approximately $9.3 million of projects in the coming year, utilizing and continuing the $650,000, capital project funding that began in fiscal year 2019. The projects assumed in the presentation included the continuation of the Waxhaw Fields, tentative construction of a public services facility, along with additional funding of $5,820,000 of projects which may be determined by the Board at a later date. Staff will compile a more extensive list of possible projects to present to the Board for consideration during a future discussion of the Capital Improvement Plan.
GENERAL FUND-TRANSFERS OUT
The proposed budget for the General Fund includes the recommended transfer out to the Capital Reserve Fund of $650,000, to continue following the funding model planned to provide for the Capital Improvement Plan (CIP). In addition, the General Fund proposed budget includes a $100,000 budget line for a possible transfer to begin the planning phase of a capital project(s) which may be determined by the Board at a future date. The proposed budget also includes a tentative transfer to provide a grant match of $10,000 to fund a possible grant that the Community Development division may apply for in order to fund a bicycle plan.
FUND BALANCE – GENERAL FUND
Government Accounting Standards require that governmental reserves be classified dependent upon the restrictions of the source of funding. Following this requirement, local governments set aside money in separate fund balance accounts either as "Restricted" by external sources, such as by state statute or grantor requirements, or "Committed" or "Assigned" for specific purposes, such as for separately budgeted ordinances for capital projects. "Unassigned" is the residual classification of the General Fund and includes all amounts not contained in other classifications. Therefore, “Unassigned" is the amount available for future appropriation. Cities and towns measure the health of their reserves by the determining the percentage of Unassigned Fund Balance compared to the next year's budgeted expenditures.
The Town of Waxhaw has established a goal of unassigned fund balance for the General Fund in the range of 30%-40% of next year’s budgeted expenditures in order to maintain financial stability and prepare for unforeseen circumstances. This range sets the goal at a
18 minimum of approximately three months of the next fiscal year's annual budgeted expenditures.
As of the fiscal year ending June 30, 2018, the Town of Waxhaw Unassigned Fund Balance exceeded the policy goal at 42% of the next fiscal year 2019 budgeted expenditures. Therefore, the Unassigned Fund Balance as of June 30, 2018 was approximately $245,000 above the set goal. It is expected that fiscal year 2019 also will result in additional growth in fund balance.
During the budget workshop held on April 9, 2019, staff and financial advisor Davenport & Company discussed the possible use of the additional reserves currently in the General Fund as “seed” funding for any possible capital project the Board may select. Utilizing a reimbursement resolution, the Town could utilize its excess reserves to begin projects that might eventually be funded with debt. Although these amounts would be available for future appropriation, no fund balance appropriation amounts have been included in this proposed budget.
CAPITAL IMPROVEMENT PLAN RESERVE FUND
The Capital Improvement Plan, which is continually being developed through collaboration between the staff, Board, and financial advisor, Davenport & Company, is predicated on the ongoing provision of a set amount as the basis to develop and fund the improvements to parks, roads, and other priorities that the Board has and will continue to identify.
In following the financial planning model developed by the financial advisor, the draft proposed budget for fiscal year 2020 will again call for a transfer of $650,000 in from the General Fund into Capital Improvement Plan Reserve Fund to continue to provide funding for the long term project plan. The Fund’s revenue of $650,000 must be balanced by an expenditure line of $650,000 for tentative future projects, although it is not currently expected or known if any funds will be expended during fiscal year 2020.
CAPITAL PROJECTS FUND
The Capital Projects Fund has been an annually budgeted fund that has historically accounted for multiple projects simultaneously. During the past year, budget for several projects have been extracted from the Capital Projects Fund in order to establish multi-year capital project funds to correctly account for each approved project. The largest transfer was for the Kensington project, which transferred $1,312,000 in fiscal year 2019 to a new capital project fund. Therefore, the only remaining fund balance currently in the fund, is the balance remaining from the contribution received from the developer, Landeavor, in fiscal year 2018. The proposed budget appropriates the $466,910 remaining fund balance for transportation improvements to be determined at a later date.
RENTAL FUND
The Rental Fund is used to account for the revenues and expenditures for the Niven-Price building located on Main Street. The Town purchased the property in 2012. The property is managed by a realty company which handles the day-to-day operations of the building and
19 collects the rent received from tenants. The net rental income has exceeded all costs that the Town has incurred in each year since the Town purchased the property, which has resulted in the accumulation of fund balance which may be used for any purpose the Board chooses. The proposed budget for fiscal year 2020 includes operating revenues of $75,000 and budgeted expenditures for utilities, building maintenance and the payment to the management company of 10% of the rents collected. In addition, the proposed budget includes a contingency for possible capital improvements of $183,200, should the Board direct staff to utilize $150,000 of the current fund balance to provide repairs or enhancements to the property as part of a possible economic development agreement. TECHNOLOGY FUND
The Technology Fund was created during fiscal year 2014 in order to provide funding for the increasing cost of administration of the permitting function, including payment of credit card fee and replacement software and technology expenses. Ten percent (10%) of all permit application fees are allocated to the Technology Fund and all of the revenues recorded and accumulated in the fund are committed for use only on technology expenditures, including credit card processing fees. The proposed fiscal year 2020 budget includes $115,000 for both revenue and corresponding appropriations in the Technology Fund.
SMALL TRANSPORTATION PROJECT (STP) FUND
This fund was created in fiscal year 2019, to fund and account for small transportation projects. NC statutes authorizes the levy of an annual municipal vehicle tax upon vehicles registered in the Town to be used to fund projects on public streets. The $25.00 per vehicle is expected to generate an estimated $285,000 during fiscal year 2020. The proposed draft budget for fiscal year 2020 includes a fund balance appropriation of $235,000, which is the unspent proceeds from the 2019 collections, for a total available of $520,000 for transportation projects which will be determined by the Board at a later date.
POWELL BILL FUND
North Carolina municipalities receive financial assistance from the State to help pay for the construction, maintenance and repair of municipal streets. North Carolina levies motor fuel taxes pursuant to a formula that increases taxes when the wholesale price of motor fuels increases. The State appropriates a certain percentage of this revenue, plus an additional percentage of the net proceeds of the North Carolina Highway Trust Fund, to eligible municipalities across the state. The legislation that first established this distribution is known as the Powell Bill (after its principal sponsor in the North Carolina Senate), and the monies distributed to the municipalities are now referred to as Powell Bill funds. The available funds are distributed among eligible municipalities according to a two-part formula. Three-quarters of the local proceeds are distributed on a per capita basis and one-quarter according to the number of miles of non-state streets in each municipality. Per state statue, municipalities may use Powell Bill funds “only for the purpose of maintaining, repairing, constructing, reconstructing or widening of any street or public thoroughfare including bridges, drainage, curb and gutter, and other necessary appurtenances within the corporate limits …”
20 The proposed 2020 budget estimates the distribution of Powell Bill revenue will increase to $360,000, or by approximately 4%, to reflect the increase in population and acceptance of additional street miles within the Town limits. An additional $150,000 of appropriated Powell fund balance, along with interest earnings of $16,000, will provide a budget of $526,000 for repair and paving projects for fiscal year 2020. This is approximately $37,000 below the prior year, which utilized additional fund balance which had been available at that time. POLICE FUNDS
The Police State Drug Fund and the Police Federal Drug Fund are restricted funds.
The Police Explorer’s raise their own money with dues and fund raisers to support their activity. A separate fund ensures that the kids are able to utilize the funding that they worked hard to obtain. For the fiscal year 2020 budget, $5,000 of the Explorer fund balance is available to be utilized to pay for the dues and activities of the Explorer Club.
Per state and federal statutes, the restricted expenditures for the drug funds are to be utilized exclusively by the Police Department and cannot supplant the General Fund expenditure budget.
Revenue is only occasionally received for the Police Federal Drug Fund. The fund has previously accumulated and retained a fund balance which has been re-appropriated each year, however the FY20 budget for the Police Federal Drug fund has been reduced to $10, as compared to the $36,330 in the previous year, because the entire fund balance is expected to be transferred out to provide a grant match during fiscal year 2019.
GRANT FUNDS
Major grant projects that will take longer than one year to complete are segregated into separate funds for each grant. The multi-year budget for those funds are adopted by separate grant ordinances and therefore are not addressed in this annual budget ordinance. The proposed budget includes a $10,000 transfer out of the General Fund for a possible grant match that the Community Development Department will tentatively apply for to fund a bicycle plan. If the Town is approved for a grant, this amount could be transferred into a new capital project grant fund at that time.
BUILDING INSPECTION FUND
During fiscal year 2019, the General Fund budget was amended to remove the Building Inspections Department revenue collections and expenditures from the General Fund to establish a new restricted fund in response to recent legislation. The separate fund also enables the Finance Department to easily report the separate functions to the state treasurer on the Annual Financial Information Report (AFIR) as prescribed by the State and Local Government Finance Division, Fiscal Management Section, to fulfill the reporting requested by the new legislation.
The proposed budget for fiscal year 2020 includes revenue of $1,300,000 for Building Inspection, which is restricted to be used only for costs related to building inspections. This
21 revenue is estimated at $278,000 higher than the previous year due to additional inspections expected to continue on the Ardmore Apartment construction.
A portion of each building inspection fee is set aside to be paid to the state Homeowner’s Recovery Fund which helps homeowners who have suffered losses from building construction contractors. The $3,000 expected revenue to be collected is shown in the revenue section of the Building Inspection Fund and the corresponding $3,000 estimated payment to the state is shown in the fund’s expense line.
The Building Inspections Fund separately accounts for all salary and benefits for the eight employees involved in the function, including inspectors and administrative staff. The North Carolina Code Officials Qualifications Board (NCCOQB) certifies enforcement officials in five technical trades: Building, Electrical, Mechanical, And Plumbing and Fire Prevention. The Building Inspection Fund includes professional membership dues and certification fees required by the NCCOQB, along with required education, training and travel required to obtain and maintain certifications.
The Building Inspection Professional Services line includes contract expenses for additional inspections required for the apartment buildings.
During fiscal year 2019, the Building Inspections Department budget included $60,000 for the contract with the Waxhaw Fire Department (WFD) to provide fire inspections for the Town. During mid-year, the WFD fire inspector took another position at Union County, therefore, in order to continue the required fire inspections, the Town recently hired its own Fire Marshal, whose salary, benefits, supplies and other support will be provided out of the Building Inspection Fund. The proposed budget includes a vehicle for the new Fire Marshal/Inspector.
The Building Inspection division currently uses a Tyler Technology software called Energov. Updates to the software, provided by Tyler, are currently being reviewed to determine the best fit for the department processes and compatibility with finance software. A contingency is budgeted for in the Building Inspection Fund should the division wish to solicit an RFP for updated software that would better fit the needs of the inspection function.
22 Conclusion
In summary, this proposed budget for fiscal year 2020 is balanced in accordance with State statutes and was prepared in a manner designed to fund ongoing operations, programs and initiatives, as well as to set aside funding for the Capital Improvement Plan.
I wish to thank the Board of Commissioners for providing guidance to inform the development of this budget, along with the Town staff for their knowledgeable input, teamwork and collaboration which enabled many improvements to the budget‘s quality. Although the recommended budget does not fund all of the requests made by the departments, it does address the top priority needs of the Town and Board and is set to maintain a high level of service to the public.
I respectfully request that the Board consider the adoption of this budget.
Respectfully submitted,
Greg Ferguson Town Manager
TOWN OF WAXHAW, NORTH CAROLINA Fiscal Year 2019-2020
BE IT ORDAINED by the Board of Commissioners of the Town of Waxhaw, North Carolina:
SECTION 1: That for the operation of the Town of Waxhaw for the fiscal year beginning July 1, 2019 and ending June 30, 2020, the amounts in the following schedules are appropriated:
GENERAL FUND: Elected Officials $ 250,500 Administration $ 617,445 Clerk $ 228,495 Finance $ 645,190 IT $ 321,155 Human Resources $ 161,990 Police $ 3,636,015
Waxhaw Fire Department $ 13,000
Engineering $ 639,090
Planning $ 819,370
Downtown $ 176,935
Code Enforcement $ 76,830
Parks & Recreation $ 1,101,685
Public Services $ 1,002,655
Environmental Protection-Sanitation $ 1,390,000
Emergency Mgt & Safety $ 45,395
Transfers $ 760,000
GENERAL FUND $ 11,885,750
CAPITAL PROJECTS FUND $ 466,910
RENTAL PROPERTY FUND $ 225,000
CEMETERY FUND $ 20,100
CAPITAL IMPROVEMENT PLAN RESERVE $ 650,000
POLICE EXPLORERS FUND $ 6,230
POLICE STATE DRUG FUND $ 13,500
POLICE FEDERAL DRUG FUND $ 10
POWELL BILL FUND $ 526,000
TRANSPORTATION - SMALL PROJECT $ 520,000
TECHNOLOGY FUND $ 115,000
BUILDING INSPECTION FUND $ 1,303,000
2019 and ending June 30, 2020, to meet the appropriations in Section 1, as set forth in the following schedules:
SECTION 3: There is hereby levied a property tax rate of thirty-eight and one half cents ($0.385) per on hundred dollars ($100) valuation of property as listed for taxes as of January 1, 2019, for the purpose of raising the revenue listed as “Ad Valorem Tax” in the General Fund in Section 2 of this Ordinance. This rate is based on total estimated net valuation of property for the purposes of taxation of $1,909,900,500 and the Fiscal year estimate rate of collection of 99.28%.
SECTION 4: The corresponding “FY 2019-2020 Schedule of Fees” is approved with the adoption of this Annual
Budget Ordinance.
SECTION 5: The Town Manager is hereby authorized to transfer appropriations between line-item expenditures within the same fund. He may not transfer any amounts between funds, except as approved by the Board of Commissioners in the Annual Budget Ordinances as amended.
SECTION :6 Copies of the Annual Budget Ordinance shall be furnished to the Town Clerk, to the Board of Commissioners, the Town Manager, Budget Officer and the Finance Officer to be kept on file by them for their direction in the disbursement of funds.
Adopted this the _______day of xx, 2019.
____________________________________ Stephen E. Maher, Mayor
Attest:
____________________________ Melody Shuler, Town Clerk
GENERAL FUND:
Ad Valorem Taxes $ 7,326,990
Sales & Use Tax $ 2,140,000
Franchise Tax $ 840,000
Interest Earnings $ 175,000
Other Revenues $ 1,403,760
GENERAL FUND $ 11,885,750
CAPITAL PROJECTS FUND $ 466,910
RENTAL PROPERTY FUND $ 225,000
CEMETERY FUND $ 20,100
CAPITAL IMPROVEMENT PLAN RESERVE $ 650,000
POLICE EXPLORERS FUND $ 6,230
POLICE STATE DRUG FUND $ 13,500
POLICE FEDERAL DRUG FUND $ 10
POWELL BILL FUND $ 526,000
TRANSPORTATION - SMALL PROJECT $ 520,000
TECHNOLOGY FUND $ 115,000
BUILDING INSPECTION FUND $ 1,303,000
